Goldstone to SEDC: Really, Stop It

Published: Tuesday, August 26, 2008 7:13 PM PDT

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Despite a committee of the board of the Southeastern Economic Development Corp. essentially ignoring his last memo, the city's COO, Jay Goldstone, just sent SEDC board chairman Artie M. "Chip" Owen another pointed missive.

This time, Goldstone warned Owen that the city will not release funds to SEDC for any actions approved by the board and told him to inform the board to hold off on action until four new board members are approved by the City Council on Sept. 2.

The memo makes no specific mention of three high profile legal issues the SEDC board will consider at Wednesday's meeting, but warns Owen not to allow the board to approve several agreements that it is due to discuss.

I detailed all the issues the board is due to examine in my story today.

Goldstone's memo to Owen yesterday warned him that the lame duck board should not be acting on personnel matters with long-term implications, but the board's Personnel and Budget Committee voted on two personnel matters in today's meeting.

The latest memo goes one step further, warning Owen that SEDC will not be reimbursed for any agreements approved in its board meetings if the agency asks the city for reimbursement.

It also instructs Owen to ensure that a copy of the memo is made available to all board members prior to tomorrow night's meeting. Before today's committee meeting, the committee's chair, Charles Simpson, denied all knowledge of Goldstone's previous memo.

Goldstone's memo comes in the wake of another threatening memo sent to Owen by Councilman Jim Madaffer. City Attorney Mike Aguirre has also said he intends to take action to warn the SEDC board about the implications of its actions and votes at Wednesday's meeting.

The officials say they want a new slate of board members in before any new actions are taken by the board. Four members who've been supportive of recently terminated President Carolyn Y. Smith are slated to be replaced by the council at its next meeting Sept. 2.

Owen, who has been the subject of some controversy of his own, is one of the four trustees scheduled to be removed.